Saudi motor insurer boosts profit as pandemic means fewer car crash claims

Saudi motor insurer boosts profit as pandemic means fewer car crash claims

RIYADH: One of Saudi Arabia's biggest insurers reported a jump in earnings after it paid out fewer motor claims last year as the pandemic forced millions to stay at home. AXA Cooperative Insurance net profit rose by almost 54 percent to SR166. 8 million ($44. 5 million) last year, the company said in a filing to the Tadawul stock exchange. While its gross written premiums edged up only marginally over the year, its net incurred claims fell by 6. 5 percent. Its motor insurance business as well as property and casualty claims were the main factor behind the improvement of the loss ratio. Still, the improved performance is set against a backdrop of tough competition in the overcrowded regional insurance sector. "Ongoing high competition, a contraction in population of about 4 percent across the GCC on average, and economic uncertainty will weigh on growth prospects and earnings, while elevated asset risk could lead to further volatility in the coming quarters," S&P Global Ratings said in a report last month. The fall in motor insurance claims is a trend that has been witnessed worldwide. Data from the Association of British Insurers show that the number of motor insurance claims settled last